February 2026 Fourth District Beige Book

Full transcript

Businesses tell the Cleveland Fed that activity grew, but their costs also increased and nonprofits reported people are struggling to make ends meet. That's the latest update from the February edition of the Fourth District's Beige Book. Businesses report activity grew modestly on net and contacts expect that trend to continue. Manufacturing commercial construction contacts said that they saw increased demand with multiple contacts saying data center projects were making up a major part of their work right now. But businesses also reported higher costs for things like insurance, professional services, utilities, and materials. Metals and food costs were particularly up. And our nonprofit contacts in the district said that clients' financial stress worsened over the past three months because of higher food, utility, and housing costs, along with reduced access to support services. Visit clevelandfed.org to see more insights on the Fourth District's economy.